Red fuel consultation launched

I found this & thought it may be of interest.

THE GOVERNMENT has launched a consultation into the use of rebated gas oils with a view to tightening the rules governing the use of red diesel.

Users of rebated fuels currently pay an effective duty rate of 5.22p per litre, 41.88p per litre less than standard fuel for road use.

Vehicles entitled to run on red diesel are classified as those used exclusively off-road or used on public roads only incidentally - journeys of brief duration or infrequent occurrence.

According to the Treasury, recent investigations show that “increasingly tractors are being used to haul agricultural goods simply because entitlement to use rebated gas oil makes them more economic for this purpose than other forms of haulage.”
This, combined with other more clear-cut illegal use of red diesel, constitutes what the government refers to as oil fraud.

Illicit use costs the Exchequer more than £0.5bn each year - a definite incentive for the government’s recent decision to investigate red diesel use.

High-speed tractors, suspension, air-cushioned seats and more efficient braking systems have led to the use of tractors in preference to vehicles that do not qualify to use red diesel, according to the document.

Lower safety standards than conventional road-going vehicles and the higher pollutant content of red diesel are other factors which the government uses to justify its increased scrutiny of fuel use.
For Suffolk contractor Robert Self, proposals within the consultation to limit the distance travelled using red diesel could have serious implications for his business.

If the government decides to tackle conventional tractors hauling agricultural loads over considerable distances then it could ■■■■■■■ us," said Mr Self.

“When we’re cutting silage we can often find ourselves making 30-mile round trips. It’s already difficult enough to make a margin - if we the have to start using white diesel at 80p per litre it would knock the financial viability of our operations on the head.”

In fact, fuel use legislation has already put one of Mr Self’s enterprises in jeopardy.

Throughout the winter a JCB Fastrac and driver were hired out on vegetable haulage duties, covering nearly 450km (280 miles) a day during the busiest periods.

But the law requires fully taxable white diesel to be used for such operations.

“If we can’t run legally I am not prepared to keep breaking the law,” insisted Mr Self.

"Vegetable haulage provided a useful winter income, but we’ve had to pull out because the cost of using white diesel would make it unviable.

“If the same sort of restrictions are placed on conventional tractors undertaking clear-cut agricultural tasks it could spell bad news for the industry as a whole.”

Here in Germany they operate a different system.

For example, a farmer with a ‘x’ tractor and ‘x’ hectres of land is given an allowance of ‘x’ litres of fuel for the type of farm he runs.

The government sets the figures for each type of tractor, each main use that it will be put to and also the amount of land the farmer owns. All the agricultural machinery is run on ‘normal’ white diesel.

At the end of the tax year the farmer claims back the tax he would’ve paid for the diesel that is used for the farm.

This takes away the opportunity to use the fuel for what it was not intended. Admittedly, it seems a bit like ‘big brother’ setting the figures etc but at least it is fair and equal across the board.

Incidently, the government also sets the rates for haulage which all companies are to use but there are still (legal) ways and means of being competative but maybe that should be another post…

Tractors hauling goods over considerable distances is Road haulage use, not agricultural use. Haulage contractors are expected to use white diesel,they cant moan about it not geing viable,no wonder they cant earn a decent living when farmers do 280 miles a day on red!! Other industries have to pay a given rate for transport why should the agricultural sector get goods moved ’ on the cheap ’
Biggest bunch of moaners Ive ever encountered!!

On another subject a few months ago, I posted that there was a company using a tractor to do general haulage.

He runs from Newport to Welton on the A63 about 6 times a day. These vehicles should be paying the same road tax as trucks and using unrebated fuel. Maybe even the driver should have to pass some sort of test too

This tractor and trailer using a converter dolly never gets pulled onto the ministry plate when he is loaded because it is at the other side of the dual carriageway, and he runs back with empty crates.

When I worked in Germany, I had a Generator set on my trailer chassis, the BAG were always keen to check the contents, I had filled up once in the UK with red, but the agro I got from my boss was hardly worth the effort.

Im not sure whether the BAG care about a foreign registered fridge running on red, but because my truck was German I always got singled out for these checks

I go on a farming message board, and there has been a lot of discussion on this subject.

In Devon VOSA are clamping down on firms using tractors for anything other than agri use. They are being made to run on white diesel, get an O licence, Tax ect…

The view of the majority on there is that a small minority is going to screw it up for the rest. If all tractors had to use white diesel at all times then either the cost of food would have to go up or alot of farmers would be out of business. It is a case of a government plan biting it’s own backside. They have encouraged farmers to diversify, instead of them (gvt) tackling the issues, so the farmers have seen the chance of utilising their machinery better and getting some off farm income.

I can see both sides, but I am firmly on the side that the illegal use of red diesel needs to be stopped, before it knackers it up for us all

Henrys cat:
The view of the majority on there is that a small minority is going to screw it up for the rest.

I can see both sides, but I am firmly on the side that the illegal use of red diesel needs to be stopped, before it knackers it up for us all

I think you’re right, the majority use tractors/red diesel sensibly - but a few push it past it’s limits and mess up the haulage job and are likely to mess up the red diesel supply for the rest !

i’ve got a better idea, bring in the lorry road user charge and allow all trucks to use red diesel at the rebated rate then transfer the cost of the rebated fuel price onto the charge per mile for trucks.

I dont see why the farmers who haul goods for miles cannot use white derv like everyone else.i think they are undercutting the road haulage industry…but if they are hauling their own goods then there should be a rebate system for them…when i used to deliver apple juice to bulmers there use to be a lot of tractors bringing their apples into the plant…and some of them came as far away as ledbury…but if they had to use a normal haulier then their operation wouldnt pay…so the prices would have to go up…on another note when i ran fridges we always used red in them…i have used red on long international routes as well…especially in Czech…Hungary or anywhere outside the E.U…it was a cost saving measure…i met a few irish lads as well who could change the colour of diesel from a tube of dye…now thats what we all need…seeing that the rates aint gonna change for a while…oh well…back into the laboratory…

wasn’t there an outfit who got caught running a plant that took the red dye out of diesel, out humberside way a couple of years ago? if i remember rightly they had it set up to do thousands of litres a day, not a bad idea, buy in at a quid a gallon and sell out at two quid a gallon but they all got alot of jail when it came on top:cry:
my own personal veiw is,it dosn’t matter how much fuel costs as long as everyone pays the same so it’s a level playing field but unfortunately all that matters to this and previouse goverments is whats going in the coffers so they’re quite happy to see uk hauliers pay crazy amounts of tax on fuel while at the same time turning a blind eye to foreign hauliers working in the uk using fuel bought abroad and paying absolutely nothing.